If unexpected inflation does not exist

Assignment Help Business Economics

Reference no: EM13978564

If unexpected inflation does not exist:

1. Lenders gain at the expense of borrowers.

2. Borrowers gain at the expense of lenders.

3. Neither borrowers nor lenders gain or lose.

4. Both borrowers and lenders lose at the expense of the government.

Reference no: EM13978564

Questions Cloud

Depletion charge using the percentage depletion method : What is the allowable depletion charge using the percentage depletion method for year 1 only of the salt mine investment described below. The applicable rate for the percentage depletion method is 10%. Cost to acquire mine rights = $30,000

Raises the discount rate and the reserve requirement : If the Fed simultaneously raises the discount rate and the reserve requirement, the money supply will:

Variable cost to produce-the range of production of the firm : A firm makes and sells a computer for $1000. The variable cost to produce. A computer, for the range of production of the firm, is $300 per unit. The total fixed cost per year to make the computer are $4.0 million. How many computers must me made and..

Firms production function-what is short run cost function : A firm's production function is q = K^2L where q is the quantity produced, K is the amount of capital used, and L is the amount of labor used. w is the wage rate of labor and r is the rental rate of capital.

If unexpected inflation does not exist : If unexpected inflation does not exist

Should this firm continue to operate in the short run : Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. The corresponding average total cost is $3.50 and total fixed costs equal..

How much does each firm produce at the nash equilibrium : The inverse demand function for the market is P = 120 - 2Q. There are two firms: A and B. The cost for firm A are C(qA) = 18qA, and the costs for firm B are C(qB) = 18qB. Assume that both firms choose quantities simultaneously. What is each firm's be..

Assume a perfectly competitive firm is currently producing : Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. The corresponding average total cost is $3.50 and total fixed costs equal..

Explain the benefit-based principle in taxation : Explain the benefit-based principle in taxation. Also explain how this principle is linked to the Lindhal equilibrium in local public finance choice

User Account

All Pages